Performance Details

Department of Commerce, Community, and Economic Development - Alaska Industrial Development and Export Authority

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Mission

Promote, develop, and advance economic growth and diversification in Alaska by providing various means of financing and investment.

Core Services

• Manage the Alaska Industrial Development and Export Authority`s (AIDEA) project development and loan portfolio for the optimal growth of net asset balance while maintaining positive returns to meet operational requirements.
• Provide long-term financing, and/or refinancing, to Alaskan businesses for new or existing projects, and provide access to taxable or tax-exempt conduit bond financing for Alaskan non-municipal organizations.

Mission Results

Core Services

A: Promote economic growth in Alaska. Details >

A1: Manage the Alaska Industrial Development and Export Authority`s (AIDEA) project development and loan portfolio for the optimal growth of net asset balance while maintaining positive returns to meet operational requirements. Details > TARGET #1: Manage AIDEA"s Development Project portfolio for best growth of net asset balance. TARGET #2: Maintain sufficient liquidity to meet bond covenants, fund project investments and fund new loans. Build and maintain liquidity to support Alaska projects, pay an annual dividend to the State general fund, and allow AIDEA to meet operating expenses. A2: Provide long-term financing, and/or refinancing, to Alaskan businesses for new or existing projects, and provide access to taxable or tax-exempt conduit bond financing for Alaskan non-municipal organizations. Details > TARGET #1: Issue $60 million in new loans each year from the Alaska Industrial Development and Export Authority (AIDEA) Revolving Loan Fund. TARGET #2: Maintain Revolving Fund loan portfolio delinquency rate lower than 3% of the outstanding balance.

Performance Detail

Target #1: Manage AIDEA"s Development Project portfolio for best growth of net asset balance. Methodology: Data is from AIDEA"s (audited) Annual Financial Statements. Analysis of results and challenges: AIDEA actively promotes economic diversity, job creation, and responsible resource development through its loan, project finance, and infrastructure development programs. The organization focuses on creating intermodal transportation systems—such as roads, railways, and ports—to lower the costs associated with accessing and exporting Alaska"s natural resources. Additionally, AIDEA is working to enhance infrastructure aimed at reducing energy costs across the state. As Alaska"s development finance authority, AIDEA collaborates with the private sector through public-private partnerships to build the necessary infrastructure for the responsible development of the state"s natural resources. In FY2024, development project loans decreased by $12.9 million, primarily due to a $2.8 million loan payment and a $7.0 million write-down of the BlueCrest Alaska Operating, LLC loan. The remainder of the decrease was attributed to payments on other loans. Development project leases decreased by $12.2 million because Federal Express Corporation did not exercise the lease extension as expected, resulting in the lease continuing on a month-to-month basis. Since this lease is now categorized as a short-term lease under Government Accounting Standards Board (GASB) Statement No. 87, the remaining receivable had to be written off. The $37.5 million decrease in capital assets was caused by a correction in the underlying asset values following the FY2022 implementation of GASB 87. Since its inception in 1967, AIDEA has directed more than $3.5 billion toward economic development in Alaska and has declared $475 million in dividends to the state since 1997. Target Last Modified: 11/14/2024

Target #2: Maintain sufficient liquidity to meet bond covenants, fund project investments and fund new loans. Build and maintain liquidity to support Alaska projects, pay an annual dividend to the State general fund, and allow AIDEA to meet operating expenses. Methodology: Data is compiled from AIDEA"s Accounting system and corroborated in AIDEA Annual (audited) Financial Statements. Analysis of results and challenges: AIDEA`s Revolving Fund Cash and Investments, when compared to General Obligation Debt, communicates to the market that AIDEA has the financial management and internal controls to sufficiently meet its debt service obligations. This operationally driven liquidity enables AIDEA to meet its financing goals and access cost-effective external capital. A high cash ratio increases AIDEA"s overall capacity for project investment and new loan funding. In FY2020, AIDEA defeased all of its outstanding general obligation bonds, resulting in a N/A ratio calculation for the past five years with high levels of liquidity and no debt outstanding as of June 30, 2024. Target Last Modified: 11/14/2024

Target #1: Issue $60 million in new loans each year from the Alaska Industrial Development and Export Authority (AIDEA) Revolving Loan Fund. Methodology: Data is compiled from AIDEA"s Loan management and reporting system. Analysis of results and challenges: The current high interest rate environment, combined with clients seeking ways to finance new construction, has led to an increase in loans. Historically, construction in Alaska has been costly; however, rising material and labor costs have made AIDEA essential for the success of projects. In FY2024, AIDEA approved over $74 million in funding. This included the construction of two new office/hotel buildings in downtown Anchorage, as well as various new construction and real estate projects across the state. So far, due to lender constraints beyond AIDEA"s control, $28 million of the $74 million is not expected to be funded. Nevertheless, this highlights a notable growth in loans for the loan participation program over the past several years. Usage of the AIDEA Loan Participation Program by the State"s commercial lenders has decreased due to several factors, including increased interest rates, reduced borrowing power, a smaller pool of qualified borrowers, and market uncertainty. Instead, lenders have submitted larger loans—$25 million or more—rather than amounts less than a million. In FY2024, despite issuing fewer loans, AIDEA`s loan programs have shown an improved percentage compared to the past several years. It is expected that this trend will continue to rise in FY2025. Target Last Modified: 11/14/2024

Target #2: Maintain Revolving Fund loan portfolio delinquency rate lower than 3% of the outstanding balance. Analysis of results and challenges: The Alaska Industrial Development and Export Authority (AIDEA) effectively navigates the challenge of making sound financing decisions while promoting economic growth in Alaska. The loan delinquency rates for the Loan Participation program have remained significantly below the three percent threshold observed in previous years. AIDEA"s willingness to be patient and flexible with its capital has resulted in a portfolio that reports a 0% delinquency rate. Target Last Modified: 11/14/2024

Last refreshed: 05/12/2025 12:00 pm